2018 (9) TMI 1173

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....ining the Penalty u/s 271 (1)( c) of Rs. 2,63,298/- which was imposed on disallowance of Registrar of Companies Charges and Deduction u/s 80HHC of the Income Tax Act,1961. 2. That the learned Commissioner of Income Tax (Appeals) has also failed to appreciate that even on the principle of consistency the disallowance made is untenable. 3. That the learned Commissioner of Income Tax (Appeals) has also failed to appreciate that tax has been paid as per provisions of section 115JB of the Income Tax act, in which such additions does not play any role as has been held by the judgment of Hon'ble High Court of Delhi in the case of CIT vs. M/s Nalwa Sons Investment Ltd. 4. That the learned Commissioner of Income Tax (Appea....

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....lty of Rs. 2,63,298/- u/s 271 (1)(c) of the Act for furnishing of inaccurate particulars of its income. 4. Aggrieved by penalty order, the assessee filed appeal before the CIT (A). The CIT (A) dismissed the appeal of the assessee. 5. The Ld. AR submitted that in sustaining the penalty u/s 271(1)(c) of Rs. 2,63,298/- which was imposed on disallowance on ROC charges and deduction u/s 80HHC of the Income Tax Act, 1961 are not proper and just. The Revenue authorities failed to appreciate that tax has already been paid as per provisions of Section 15JB of the Act in which such additions does not play any role as has been held by the Hon'ble Delhi High Court in case of CIT Vs. M/s Nalwa Sons Investment Ltd. (2010) 327 ITR 543. The Ld. AR fu....

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....book profits' computed under Section 115JB of the Act. The higher of the two amounts is regarded as total income and tax is payable with reference to such total income. If the tax payable under the normal provisions is higher, such amount is the total income of the assessee, otherwise, 'book profits' are deemed as the total income of the appellant in terms of Section 115JB of the Act. 22. In the present case, the income computed as per the normal procedure was less than the income determined by legal fiction namely 'book profits' under Section 115JB of the Act. On the basis of normal provision, the income was assessed in the negative i.e. at a loss of Rs. 369521018. On the other hand, assessment under Section 11....